Carlos Ghosn¡¯s arrest threw Nissan Motor Co. into a corporate tailspin with allegations of self-dealing, profligate spending and filing false statements. Now the automaker¡¯s profits are falling off a cliff, and successor Hiroto Saikawa may go down with them.
Troubled by slumping U.S. sales, aging models and a product cycle that¡¯s out of sync, the Yokohama-based company is on track to announce on Tuesday its lowest annual operating profit in a decade, raising the possibility of a dividend cut. The outlook for the current fiscal year to March 2020 probably won¡¯t be any more promising.
Chief Executive Officer Saikawa has yet to announce a turnaround plan since the arrest of former Chairman Ghosn in November, and people familiar with the matter say there¡¯s internal strife over whether he¡¯s the right executive to fix Nissan. Alliance partner Renault SA may not look too favorably on Saikawa¡¯s reappointment if he continues to oppose a merger said to be backed by its own Chairman Jean-Dominique Senard, who is also a Nissan director.
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